Zero Co., Ltd. (9028) AI Stock Analysis

• Market Cap: ¥52.85B
• Dividend Yield: 4.39%
• Average Volume (3M): 70.79K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.78
• Revenue Growth: 5.04%
• EPS Growth: 72.34%
• Country: JP
• Employees: 2,647
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Dealerships
• EPS (TTM): 101.88
• Shares Outstanding: 17,560,242
• 10 Day Avg. Volume: 171,410
• 30 Day Avg. Volume: 70,793
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,840.00
• Price Target Upside: 20.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥3,840.00 ▲(20.19% Upside)

Zero Co., Ltd. scores highly due to its strong financial performance and attractive valuation, which are the most significant factors. The technical analysis indicates strong momentum but suggests caution due to overbought conditions. Overall, the company is well-positioned for growth in the auto dealership industry.

Zero Co., Ltd. Business Overview & Revenue Model

Company Description

Zero Co., Ltd. (9028) is a innovative company focused on sustainability and environmental solutions, primarily operating in the sectors of waste management, recycling, and eco-friendly product development. The company is dedicated to reducing plastic waste and promoting a circular economy through its range of products and services, which include refillable packaging systems, biodegradable materials, and waste reduction technologies.

How the Company Makes Money

Zero Co., Ltd. generates revenue through multiple streams, primarily from the sale of its eco-friendly products and services. The company offers a subscription model for its refillable packaging systems, providing customers with a sustainable alternative to single-use plastics. Additionally, Zero Co. earns income from partnerships with businesses and municipalities looking to implement waste reduction strategies, including consulting services and technology solutions. Key revenue streams also include the sale of biodegradable materials to manufacturers and retailers, as well as potential licensing agreements for their proprietary technologies aimed at waste management and recycling.

Zero Co., Ltd. Financial Statement Overview

Summary

Zero Co., Ltd. demonstrates strong financial health with consistent revenue growth, improved profitability margins, and robust cash flow generation. The company's stable balance sheet and efficient cost management indicate a solid financial foundation.

Income Statement

Zero Co., Ltd. exhibits strong financial performance with consistent revenue growth over the years, notably achieving a 5.3% growth in the latest TTM period. The company maintains healthy profitability margins, with the net profit margin improving to 4.48% in the TTM period. Additionally, the EBIT and EBITDA margins have shown considerable improvement, indicating effective cost management and operational efficiency.

Balance Sheet

Zero Co., Ltd. displays a solid balance sheet with a manageable debt-to-equity ratio of 0.37 in the TTM period, showcasing low leverage risk. The company also enjoys a healthy equity ratio of 55.22%, reflecting strong financial stability. The return on equity has improved to 16.17%, demonstrating effective use of shareholder equity to generate profits.

Cash Flow

The cash flow position of Zero Co., Ltd. is robust, with significant growth in free cash flow, increasing by 21.0% in the latest TTM period. The operating cash flow to net income ratio is 1.88, indicating strong cash generation relative to earnings. The company efficiently converts its net income into free cash flow, underscoring its capability to fund operations and investments.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	148.20B	140.75B	132.86B	107.05B	92.17B	89.50B
Gross Profit	20.99B	17.67B	15.20B	13.13B	13.40B	12.40B
EBITDA	14.59B	11.30B	10.08B	8.64B	9.71B	8.14B
Net Income	6.64B	4.15B	3.44B	2.54B	3.63B	2.38B
Balance Sheet
Total Assets	74.38B	70.73B	56.56B	55.19B	50.94B	44.51B
Cash, Cash Equivalents and Short-Term Investments	11.63B	11.32B	5.94B	5.65B	5.91B	4.79B
Total Debt	15.06B	14.25B	7.29B	10.52B	10.62B	8.00B
Total Liabilities	32.66B	32.86B	22.72B	24.57B	22.64B	19.62B
Stockholders Equity	41.08B	37.21B	33.28B	30.07B	28.28B	24.86B
Cash Flow
Free Cash Flow	10.22B	8.45B	6.59B	1.26B	5.54B	4.54B
Operating Cash Flow	12.49B	11.23B	8.78B	3.95B	8.59B	6.54B
Investing Cash Flow	-3.38B	-4.66B	-2.17B	-3.27B	-3.10B	-2.07B
Financing Cash Flow	-4.92B	-824.00M	-6.29B	-1.61B	-4.36B	-3.16B

Zero Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9028, the sentiment is Neutral. The current price of 3195 is below the 20-day moving average (MA) of 3288.25, above the 50-day MA of 3180.63, and above the 200-day MA of 2728.21, indicating a neutral trend. The MACD of 4.03 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9028.

Zero Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9028	81 Outperform	¥52.85B	7.54		4.39%	5.04%	72.34%
7134	78 Outperform	¥9.53B	12.82		2.77%	7.91%	8.30%
7593	72 Outperform	¥58.33B	11.58		4.90%	8.88%	-25.45%
5589	72 Outperform	¥17.12B	11.65		2.81%	2.16%	-4.76%
8291	72 Outperform	¥30.62B	7.91		4.64%	-5.73%	-38.92%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
9268	52 Neutral	¥24.10B	14.70		5.07%	50.37%	-148.77%

Zero Co., Ltd. Corporate Events

Zero Co., Ltd. Stock Gains Loan Margin Trading Status

Zero Co., Ltd. announced that its stock has been newly selected as a loan margin trading issue on the Tokyo Stock Exchange Standard Market, effective May 20, 2025. This selection is expected to enhance the liquidity and supply-demand balance of the stock, contributing to more active trading and fair pricing.